WASHINGTON (AP) — Student loan debt isn’t just a problem for the young. A small, but growing percentage of seniors struggle to pay back education debt – tens of thousands even seeing their Social Security benefits offset when they cannot make payments.

Among Americans ages 65 to 74, 4 percent in 2010 carried federal student loan debt, up from 1 percent six years earlier, according to a Government Accountability Office report to be released Wednesday. For all seniors, the collective amount of student loan debt grew from about $2.8 billion in 2005 to about $18.2 billion last year.

“Some may think of student loan debt as just a young person’s problem,” Sen. Bill Nelson, D-Fla., chairman of the Senate Aging Committee, said in a statement. “Well, as it turns out, that’s increasingly not the case.”

The GAO found that about 80 percent of the student loan debt by seniors was for their own education while the rest was taken out for their children. It said federal data showed that seniors were more likely to default on loans for themselves compared with those they took out for their children.

It’s unclear when the loans originated, although the GAO noted that the time period to pay back such debt can range from a decade to 25 years. That means some older Americans could have taken out the loans when they were younger or later in life, such as workers who enrolled in college after a layoff in the midst of the economic downturn.

The number of older Americans who had their Social Security benefits offset to pay student loan debt increased about fivefold, from 31,000 to 155,000, from 2002 to 2013. About a quarter of loans held by seniors ages 65 to 74 were in default. The government can use a variety of tools to recoup student loans, such as docking wages or taking tax refund dollars.

“As the baby boomers continue to move into retirement, the number of older Americans with defaulted loans will only continue to increase,” the GAO said. “This creates the potential for an unpleasant surprise for some, as their benefits are offset and they face the possibility of a less secure retirement.”

Nelson’s committee scheduled a hearing Wednesday to address the issue.

]]>http://newsone.com/3050868/older-americans-struggle-with-student-debt/feed/33stduent-loanskirstenwestsavalistduent-loansWhat Is A Government Shutdown, How Does It Affect You?http://newsone.com/2731991/government-shutdown-effects/
http://newsone.com/2731991/government-shutdown-effects/#commentsWed, 02 Oct 2013 14:11:58 +0000http://newsone.com/?p=2731991]]>
D-Day! The Affordable Care Act (ACA) or Obamacare is finally in motion and there are tons of Republicans who are up in arms about its passing. A partial shutdown of the U.S. government began shortly after midnight on Tuesday, when the two houses of Congress could not see eye-to-eye on a budget. The Republican-led House of Representatives only agreed to compromise on the budget if there was a delay to the start of Obamacare, the President’s signature healthcare reform plan.

A total of about 800,000 federal employees will not be clocking in to work as government departments no longer have free funds to pay them.These employees might not be given a check when they return either.

Shutdowns have lasted anywhere from five to 21 days in the past. When these shutdowns occur, only “essential” workers will continue to perform their duties (as outlined below), albeit with a delayed paycheck. These workers could receive retroactive pay if/when Congress decides to fund the government again, BUT the fractured nature of this Congress makes such a step unlikely.

Which Agencies Will Continue Their ‘Business as Usual’ Practices During the Shutdown?

Social security checks will continue to be sent out, and Medicare and other similar entitlements will go on as usual; employees who work for government functions “necessary to protect life” cannot shut their doors to the public, such as law enforcement, Homeland Security, Coast Guard, Secret Service, U.S. military, intelligence agencies, embassies, consulates that help Americans abroad, emergency medical care, border patrol, and emergency and disaster assistance. Then there are other agencies that have been deemed essential and that must remain open during government shutdowns: the banking system, operating the power grid, federal air traffic control, unemployment benefits, and food stamps programs. The agencies that have independent funding, such as the U.S. Postal Service and the Federal Reserve, will also remain open.

The federal courts will continue to operate until the 10th business day of a shutdown, and at that point, they will begin to furlough non-essential employees. Court cases will, however, continue to be processed. It will be business as usual for the U.S. Supreme Court as well.

The school federal lunch program will hopefully remain unaffected by the shutdown as schools are reimbursed for these costs on a monthly basis and are allowed to carry over funds from the previous fiscal year. According to the USDA, most schools should be fine, as far as the lunch program is concerned, through the month of October.

Congressional members can also chose to report to work during a shutdown since their salaries are written into permanent law, however, they, too, will get divided into essential and non-essential personnel — and the latter could wind up being sent home.The President has 90 personal aides and only 15 of them will remain on the job during the shutdown.

President Obama will also continue to receive a paycheck during the shutdown as his $400,000 salary falls under mandatory spending, however, his paycheck could be delayed as well if furlough’s begin to affect the government’s payroll processing departments.

NASA will furlough almost all of its employees but Mission Control employees in Houston will stay put as well as those at the International Space Station.

The National Weather Service and National Hurricane Center will continue to operate as usual.

The IRS will continue as usual to collect taxes and will process 2012 extensions, which have an expiration date of October 15th. Folks, however, should expect a delay in their tax refunds.

The State Department will continue their red tape processing of foreign applications for visas and U.S. passports.<

The Department of Veterans Affairs will run their offices in the usual manner, because their monies are approved a year in advance by lawmakers for their healthcare programs. However, those vets who are appealing denials of disability benefits will unfortunately have to wait for a response after the shutdown.

Which Agencies Will Actually Get Shut Down and How Am I Affected?

The list of government agencies that will actually close their doors during the shutdown is practically endless but you can check the contingency plans of each one posted at the White House Office of Management and Budget website. Meanwhile here are some examples of how the shutdown will personally affect you:

More than 400 national parks and museums will close, including such tourist hot spots as Yosemite National Park in California, the Statue of Liberty In New York City, the Smithsonian Museum in D.C., and Yellowstone National Park in Wyoming.

The National Institutes of Health, the nation’s medical research agency based in Bethesda, Maryland, won’t be accepting new patients or begin any clinical testing.

e-Verify, the system that allows companies to check on the legal work status of an employee, will cease.

Federally backed loans will not be available. “Federal loans for rural communities, small business owners, families buying a home will be frozen,” President Obama said Friday.

IRS taxpayer assistance hotlines and walk-in centers will be closed. All audits are also suspended (good news for many).

As far as the Women, Infants, and Children’s Program, WIC, no monies will be available to pay the administrative costs.

Social Security will continue sending out those checks, BUT if you need replacement cards or need to schedule hearings for disability cases, you are out of luck!

Now the clock has started on the government shutdown, and reportedly, the feds will run out of money to pay its bills by October 17th if Congress refuses to give in on an increase to the nation’s $16.7 billion debt ceiling. Obama has said he won’t budge on this point either.

African Americans make up nearly 20 percent of 48.61 million people in this country who are living without health insurance coverage, according to the Census Bureau’s Current Population Survey. But on October 1st, the public will finally be able to begin “shopping” for affordable health insurance due to the launching of President Barack Obama’s Affordable Care Act, which is projected to have a historic impact on our community.

Just days before the launch of the unprecedented health care act, NewsOne spoke with the White House’s Director of External Affairs at the U.S. Department of Health and Human Services Anton J. Gunn (pictured below) to get informed about how the African-American community can benefit from the President’s new law in addition to learning important details about what the Affordable Care Act (aka Obamacare) will mean to us. Get educated about how you secure affordable health care for you and your loved ones here.

1. NewsOne: Who will benefit from the Affordable Care Act starting October 1st?

Anton Gunn: Millions of Americans, many of them people of color, have been disenfranchised when it comes to being able to buy health insurance, meaning you were priced out of the market, which means the price is too high for you to even buy; you were forced out of the market, where they [insurance companies] say, “You’ve reached a million-dollar cap on your policy so we are not going to cover anything else”; or you were just locked out, which is, you were born with a pre-existing condition, we are not going to cover that.

Or maybe you’ve developed the condition over time — we [insurance companies] are not going to cover that. Or maybe your child developed a condition — we are not going to cover that. So forced out, pushed out, or locked out of the Insurance market, priced out of the insurance market, that’s how it used to be.

But beginning January 1, 2014, nobody in America can be forced out, they can’t be locked out, they can’t be discriminated against because they have a preexisting condition. You’ll be able to buy health insurance coverage, and the health insurance coverage will be more affordable now than it has ever been before.

And what do I mean by more affordable?

What the Health Insurance Marketplace is, is just think about it just like a marketplace, if you went to Chelsea market [in New York], and you say, “I want some bread or I want a soda. Well, there’s not going to be just one kind of soda or one kind of bread that’s sold in the store. You’ve got choices.

So what the Health Insurance Market does is give you choices of health insurance plans that you can pick from.

And Insurance companies have to sell you a plan if you want to buy one.

So you’ll be able to go to Healthcare.gov, put in your e-mail address, and set up an account to see what you qualify for, and the reason I say, Qualify, is because some people…if you’re 25 years old and you just finished college or grad school and you’ve been looking for a job and you’ve been unemployed for the entire year and you have no income, well in some states, you will be able to get health insurance through the Medicaid program of that state.

So if you lived here in New York and you make below $15,000 a year, you can sign up right now and get health insurance through Medicaid. You don’t have to have kids; you don’t have to have a disability. You can get health insurance through that regard.

Now let’s say you make between $15,000 and $46,000 a year, so you are in the income range of a young professional. You got your first job out of college, out of grad school. You’re making $30,000 a year.

You can shop for health insurance, but you’ll also qualify based upon your income and the number of people in your household for a tax credit to help you to buy insurance.

For example, if you’ve ever bought a book on Amazon or you’ve ever used Expedia or Kayak to purchase a plane ticket, you know you go in search for the package you want. So you say, “I want these services covered, I want to pay this kind of deductible, I want this copay — it’s all self-explanatory — and you press enter, and you are going to get choices of health plans, and you’re going to see three plans — just like Expedia, you are going to see four or five choices of flights by price.

You’ll say, “OK, I see this plan here. Aetna will cover me for $334 a month and it meets all of my needs,” but because your income is at a certain level, it’s going to show you the subsidy amount you qualify for.

Let’s just say it’s $234 of subsidy, so you can pick that plan and it says, “You picked the Aetna plan, and it’s $334 a month, minus your subsidy. If you apply all of your subsidy, your health plan will be $100 a month. And so you say, “Yes,” and you pull out your debit card and you pay the first payment to Aetna and the IRS will send the other $234 right to Aetna to pay your insurance plans.

Every time you make a payment, the IRS makes a payment.

So effectively, you just got quality health insurance coverage for $100 a month, which is cheaper than your cell phone bill if you have a smart phone.

2. NewsOne: I’m glad you explained it that way, because initially what I thought was, I only have $100, does that mean that the insurance that I’m buying is an inferior form because I only have $100 and somebody else has $1,000 so they get much more and I get less coverage?

AG: No, so the way that it works is that the only insurance plans that can be offered on the marketplace have to be comprehensive, quality health plans. So, even after the Affordable Care Act is fully implemented, you can still go and call an insurance company on your own and say, “I want to buy a policy, and they can sell you a policy.

It can be inferior; it can be great. You don’t know what it is, but if you go to healthcare.gov, you will know that every plan on that marketplace will cover prescription drugs. It will cover birth control.

Let’s say some of your readers pay $50 a month, $70 a month on birth control — well that will be free under the Affordable Care Act. You have smoking cessation programs, all of these programs, so it’s going to be a quality product, because what the marketplace ensures is that all of the plans on there have to meet an actuary of value, which means it has to be quality health insurance.

It can’t be what I used to have: I used to walk around with an insurance card because I was self-employed and my wife was self-employed and I spent a bunch of money on a policy. It didn’t cover my prescriptions, it didn’t cover my daughter’s shots, it didn’t cover any of the stuff that I needed covered, but yet I’m paying them $700 a month for a policy.

So you can still buy that [type of policy] after the Affordable Care Act goes in to effect, but you won’t have those types of [inferior] products at Healthcare.Gov.

So if you are low-income, again you go in to see what you qualify for, put in your e-mail address. It’s going to ask you what is your household size. It’s going to ask you how much money you made. You answer those questions and press enter, and it’s going to say that based upon your income and your household size, you qualify for a subsidy, or it may say, “Your income is so low you qualify for Medicaid. We are going to redirect you to the state Medicaid agency for coverage.”

Well, let’s say you are balling. You are 30 years old; you are making $90,000 a year and you are a self-employed web developer and you got some big name clients, but you don’t have health insurance because you have a pre-existing condition. Maybe you don’t have anything wrong with you at all, but you just didn’t buy coverage because you thought it wasn’t important.

You can go to healthcare.gov and find a plan that is more affordable than it has ever been before. and you can buy health insurance.

For example, in New York City right now anyone who went out to buy a health insurance plan, the average health insurance plan costs $1,001 a month right now.

Under the Affordable Care Act, though, shopping at Health.NewYork.Gov, which is the New York health exchange — and you can go to Health.gov and it will take you there too — you can find the same plan that will cost you $1001 a month today, and the same plan will cost you $334, so that’s a 70 percent reduction in the health insurance prices.

So right there, if you are balling, making $90,000 a year, and don’t have any health insurance, $300 a month will be affordable to you so you can get health insurance coverage. Clearly, $1,000 is affordable to you too because of your income, but you may not want to pay that when you can get it for $300 a month.

That’s why the insurance marketplace is for everybody.

So you know young readers can go online and figure this out and use a computer. If you’ve ever filled out a financial aid form or if you’ve ever done your turbo taxes online, you can do the same thing with this website. It’s pretty self-explanatory and it guides you through the process.

3. NewsOne: What about the older consumers out there who may not be as savvy as their younger counterparts?

AG: That’s why we have two other ways to sign up for health coverage. 1. We have a 24-hour, 7-day a week call center that will be translated in to 150 different languages. So if you speak some rare brand of Creole, because you live in lower Louisiana between New Orleans and Lafayette, there will be someone who can answer the phone and explain for true how you sign up for health insurance coverage.

Call our 1-800 number. It’s 1-800-318-2596.

You can call at 3 o’clock in the morning because it’s 24/7 and say, “Hey, I’m looking for health insurance, can you explain to me what options I have under the Affordable Care Act,” and they’ll tell you everything I just told you about how the marketplace is going to work.

Or let’s say it’s after October 1st, and you say, “I’m looking to buy some health insurance coverage, can you tell me about what’s available to me?” They are going to ask you what state you are in, what’s your income, and how many people live in your household, etc. And they’ll tell you, “Well, based upon the information you gave us, here are the four insurance companies that are offering plans in your state.”

Each one of them has five plans at each metal level, which is, you get a bronze plan, silver plan, a gold, or a platinum plan, so there are a lot of plans out there, but you tell them, “I need a dental plan, because I need to get braces. I’ve needed braces since I was 16, my but parents couldn’t afford it. Now I’m 31 and I want to get braces, so can you find me a plan that will give me dental coverage so I can get braces?”

And they’ll search and they’ll find it and say, “Well, here’s one insurance plan that includes a dental plan but here we have another standalone dental plan that actually provides dental. Which dental plan would you like to buy?”

So you can do all of that through the same call center or we have what’s called “local navigators” or local organizations in each state who will basically do the same thing that I just said over the phone or over the Internet but they’ll do it face to face. They’ll sit down with you. They’ll hand you a paper application that is going to be just three pages.

4. NewsOne: Will it really on be only three pages?

AG: OK, so in the private market, before the Affordable Care Act, if you wanted to apply for insurance, you would fill out the 14- to- 17-paged form and you don’t even know what you are signing up for. Well, if you are a single person and you are applying for affordable healthcare, we’ve shortened the application down to three pages.

We don’t ask you about your pre-existing conditions; we don’t ask you about your health history, because guess what, it doesn’t matter anymore. Insurance companies can’t use that as a condition to deny you.

So you fill out some information about who you are — birthday, social security number — and you fill out a couple more pages. And if you got other members of your family, like children, you just fill out an additional page for each one of them.

So you won’t get the 15 pages unless you’re married with 11 kids!

5. NewsOne: What if you are working and you have health insurance, do you still need to call or go online.

AG: No, so they can ask questions and go online. If you have health insurance on your job — 85 percent of Americans have health insurance like that — if you work for a large employer, which is someone who has 100, 200, 300 employees, you got a good deal in health insurance. It may not seem like it when you have to pay your portion of health insurance, but most people have a really good deal, so the law is not focused on that group.

But you can still call the call center and say, “Hey, I have health insurance, but can I get a better deal.” And they are going to explain to you that you are better off staying with what you got, and the law actually precludes in the first couple of years that employees who are employed with large companies can’t leave their plan to go in to the small, individual market.

6. NewsOne: What about small employers? How does the Affordable Care Act impact them?

AG: Say you run a small mechanic shop. You’ve got seven employees. You don’t pay them a whole lot of money and you keep losing mechanics because you don’t have health insurance. Every small business that doesn’t provide health insurance, they’ve got an employee that’s looking for another job. They are losing people with turnover and time and hours to train new people once someone leaves. So that business can’t be as productive as it wants to be, because of the unaffordability of health insurance.

So the law says, “If you are a small business owner and you’ve got less than 50 employees, you are not mandated to have coverage for all of your employees, but we want you to shop anyway, because you can find an affordable deal for all of your employees, and on top of that, if you pay up to 50 percent of your employees’ healthcare costs, you get a tax credit of 50 percent off what you spent on your employee’s health care costs and you can write the other half off on your taxes at the end of the year.”

So for employers, this is a chance for you to help your employees get good quality health coverage, get a tax write-off for it, and keep healthy workers.

Small business owners can watch a video on how the Affordable Care Act works for them here:

7. NewsOne: Being that healthcare is going to be so affordable and accessible to the public, what impact do you think this will have on the larger society?

AG: Here’s the thing, there’s a lot of people who work at companies, let’s say you’ve been working at your job for five years, and deep down inside of you, you’ve had this idea of starting your own business and you really want to make it big. You know it’s going to be hot if you leave your current job, but you are married with a spouse who has a pre-existing condition or maybe your child has asthma and that’s the reason why you are staying in this job, because you have good health insurance and you want to make sure your kid keeps the good coverage that they got.

Well, guess what, because of the Affordable Care Act, that won’t be an issue anymore. You can leave your job, start your dream, start the company that you want to start, go to HealthCare.gov and find an affordable policy that will cover your child’s preexisting condition or your husband’s preexisting condition. And you could get coverage yourself — all your preventative health care, your wellness visits, your pap smears — whatever you need and want — all of that is covered under your insurance.

And if your income is low enough — you might have some savings but you don’t have a lot of earned income — depending on your income, you could qualify for enough of a tax credit, that you won’t even have to pay for the insurance every month because your income is at a low level.

You could be on Medicaid or maybe you make $18,000 a year because you did four or five shows or four or five events and made a little bit of money as an artist, for example, but you didn’t make enough to be able to pay for private insurance. That tax credit could cover the entire cost of your health care plan.

So effectively, you are getting healthcare for free. That’s what the law and the marketplace is about.

8. NewsOne: What is the final point that the public needs to know?

The two things that people need to remember is that open enrollment starts October 1st. What that really means is that you can start signing up and shopping for plans beginning October 1st. You have a six-month period to pick a plan if you are uninsured or self-employed or a small businessowner.

You have October 1st to March 31st, so you’ve got six months to make a decision for you, your employer, your family. And anybody who signs up in October, November, or December, their coverage goes in to effect January 1, so that’s when the full benefits of the law kick in.

So when you sign up, you are not likely to get your new insurance card in the mail until December. They’ll let you know, “Here’s your new card, here’s your plan, your coverage begins effectively January 1.”

So these first 10 weeks of open enrollment is like a pre-enrollment, but January 1 is when all those new benefits kick in. If you sign up on January 1, your coverage starts on February 1, a month later. So that’s the opportunity to get coverage.

9. NewsOne: What impact do you think the Affordable Care Act will have on the African-American community?

AG: I fundamentally believe that this will transform the lives of so many Black and Brown people in this country. It’s going to be dramatic. Just think about it in these terms: if you aren’t healthy in your mind and body, how much can you really contribute to your family and community and to the world at large?

How can you be the economic engine for your family and your country if you aren’t fully healthy and capable? Think about athletes — there are so many could-have-beens and never-was athletes because they got an injury and they got surgery on the injury but they couldn’t afford the rehab. So their knee never got right, and because that knee never got right, they never made it to the league.

Or how many people are there who have a condition but couldn’t get the treatment to get well and they couldn’t fulfill their goals, destinies, and dreams?

So now, the Affordable Care Act is going to mitigate all those challenges for people and it will give people a liberated ability to contribute everything that they possibly can.

I tell people all the time, We may have lost the cure for cancer last year when some 25-year-old kid got sick and died and couldn’t get the treatment they needed; we don’t know what that person was going to birth out in to the world. We just have no clue, and all of those things were taken away from us because they couldn’t access quality preventative coverage when they got sick. We will fundamentally change our community and our country by providing healthcare to the masses.

Michelle Singletary is a nationally syndicated columnist for The Washington Post. Her column, “The Color of Money” is an award-winning column, which is now carried in more than 100 newspapers.

She is the author of three books, “Spend Well, Live Rich: How to Live Well With the Money You Have (Random House);” “Your Money and Your Man: How You and Prince Charming Can Spend Well and Live Rich” (Random House), and her latest book, “The Power to Prosper: 21 Days to Financial Freedom,” published by Zondervan, a HarperCollins company.

She is a graduate of the University of Maryland at College Park, and The Johns Hopkins University, where she earned a master’s degree in business and management. Singletary and her husband reside in Maryland with their three children.

Stephen D. Briggs has over 20 years of banking experience with responsibilities that included financial reporting and analysis, identifying and analyzing community development investments and loans, community development loan underwriting and managing community reinvestment efforts.

Currently, Mr. Briggs is a Vice President and Senior Community Development Officer responsible for building and fostering collaborative relationships with key internal leaders and external partners to drive community impact across DC, Maryland and Northern, VA.

Veronica Cool has over 19 years experience in commercial lending, business banking, financial analysis and sales management and works with Wells Fargo as a Vice President in Business Banking, specializing in relationship managing, lending and credit underwriting.

She is a graduate of Kutztown University with a BS in Business Administration, and also holds a Masters of Science in Finance degree from Loyola University of MD. A native of Dominican Republic, Mrs. Cool is the Chairwoman of the Maryland Hispanic Chamber of Commerce, the association representing the 40,000+ Hispanic Businesses in the region. And currently serves on the boards of Open Society Institute, Big Brothers Big Sisters and the Maryland Small Business Technology Development Center. She is married with two children and lives northwest of Baltimore, MD.

]]>http://newsone.com/2726391/money-beat-helping-you-empower-your-financial-future/feed/7ionenewsoneWF_MoneyBeat-green_hdrmichelle_singletarystephen_d_briggsveronica_coolSMH! NFL’s Vince Young Blew $26 Million In Six Years And Is Flat Broke?http://newsone.com/2043007/vince-young-broke/
http://newsone.com/2043007/vince-young-broke/#commentsThu, 20 Sep 2012 14:21:01 +0000http://newsone.com/?p=2043007]]>After signing an NFL rookie contract in 2006 for a guaranteed $26 million, superstar quarterback Vince Young is crying the “I-ain’t-got-no-money blues,” blaming his former agent and financial planner — who he is suing — for his money pit situation. They, in turn, are saying that Young is intellectually diminutive when it comes to money, a real out-of-control spender, and had novices looking out for his financial stability, reports the New York Daily News.

The 29-year-old former Buffalo Bills quarterback is suing his former agent, Major Adams, and a North Carolina financial planner, Ronnie Peoples, alleging that they misappropriated $5.5 million. The lawsuit, which was filed in June at a Houston court, also states that there were instances when the pair forged his signature or impersonated him on the phone.

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Young filed the suit nearly a week after a New York lender contacted him about a loan of nearly $1.9 million, which was in default and was in his name from last year’s NFL lockout. Young is now seeking to stop the lender, Pro Player Funding LLC, from enforcing a judgment of nearly $1.7 million, claiming he wasn’t involved in obtaining the loan and that the proceeds went to Adams and Peoples.

According to Forbes, Young was one of at least 10 NFL players who turned to Pro Player Funding for large amounts of money in order to maintain their lifestyles during the lockout. It was reported that he borrowed the $1.9 million at 20 percent interest, with $619,112.26 in interest paid up front, and agreed that a judgment could be entered if he missed a payment.

Young allegedly authorized $1 million in payments to Pro Player directly from his Eagles salary during the 2011 season, and his accountant was working this year to have a similar arrangement with the Bills, according to court records. However, when a payment due in May was never made, the loan went in to default.

According to Young, Pro Player’s dogged efforts to serve him with papers this summer “played a role” in the Buffalo Bills’ decision to release him this past August prior to the start of the season.

On the other hand, the defense lawyers for Peoples and Adams say that the money-squandering blame should fall squarely on Young. They also claim that the Heisman trophy finalist allowed incompetent advisers to manage him, including his uncle who is a middle school teacher. “This is a person scrambling helplessly and pointing in all directions to blame others to get out of debt,” Charles Peckham, Adams’ attorney, told the Associated Press.

Young is notorious for spending exorbitant amounts of cash frivolously. He once bought all of the 120 seats on a Southwest Airline flight from Nashville to Houston, because he wanted to be alone, and then reportedly paid someone $200 to carry his bags.

In his rookie year at Tennessee, he would allegedly drop $5,000 a week at the Cheesecake Factory restaurant, treating fellow teammates. Last year, Young got in to an altercation at a strip club, when the manager refused to convert $8,000 of Young’s credit card into single dollar bills so that he could make it rain on the dancers. Young was cuffed and charged with a misdemeanor assault.

]]>http://newsone.com/2043007/vince-young-broke/feed/1vinceionerloganvinceU.S. Census: Economy Has Finally Stabilizedhttp://newsone.com/2043075/us-economy-2012/
http://newsone.com/2043075/us-economy-2012/#commentsThu, 20 Sep 2012 13:31:29 +0000http://newsone.com/?p=2043075]]>WASHINGTON — The U.S. economy is showing signs of finally bottoming out: Americans are on the move again after record numbers had stayed put, more young adults are leaving their parents’ homes to take a chance with college or the job market, once-sharp declines in births are leveling off, and poverty is slowing.

New 2011 census data being released Thursday offer glimmers of hope in an economic recovery that technically began in mid-2009. The annual survey, supplemented with unpublished government figures as of March 2012, covers a year in which unemployment fell modestly from 9.6 percent to 8.9 percent.

Not all is well. The jobless rate remains high at 8.1 percent. Home ownership dropped for a fifth straight year to 64.6 percent, the lowest in more than a decade, hurt by more stringent financing rules and a shift to renting. More Americans than ever are turning to food stamps, while residents in housing that is considered “crowded” held steady at 1 percent, tied for the highest since 2003.

Taken as a whole, however, analysts say the latest census data provide wide-ranging evidence of a stabilizing U.S. economy. Coming five years after the housing bust, such a leveling off would mark an end to the longest and most-pernicious economic decline since World War II.

“We may be seeing the beginning of the American family’s recovery from the Great Recession,” said Andrew Cherlin, a professor of sociology and public policy at Johns Hopkins University. He pointed in particular to the upswing in mobility and to young men moving out of their parents’ homes, both signs that more young adults were testing out job prospects.

“It could be the modest number of new jobs or simply the belief that the worst is over,” Cherlin said.

Richard Freeman, an economist at Harvard University, said the data point to a “fragile recovery,” with the economy still at risk of falling back in to recession, depending in part on who is president and whether Congress averts a “fiscal cliff” of deep government spending cuts and higher taxes in January. “Given the situation in the world economy, we are doing better than many other countries,” he said. “Government policies remain critical.”

The census figures also show slowing growth in the foreign-born population, which increased to 40.4 million, or 13 percent of the U.S. population. Last year’s immigration increase of 400,000 people was the lowest in a decade, reflecting a minimal gain of Latinos after many Mexicans already in the U.S. opted to return home. Some 11 million people are estimated to be in the U.S. illegally.

The bulk of new immigrants are now higher-skilled workers from Asian countries such as China and India, contributing to increases in the foreign-born population in California, New York, Illinois, and New Jersey.

Income inequality varied widely by region. The gap between rich and poor was most evident in the District of Columbia, New York, Connecticut, Louisiana, and New Mexico, where immigrant or minority groups were more numerous. By county, Berkeley in West Virginia had the biggest jump in household income inequality over the past year, a result of fast suburban growth just outside the Washington-Baltimore region, where pockets of poor residents and newly arrived, affluent commuters live side by side.

As a whole, Americans were slowly finding ways to get back on the move. About 12 percent of the nation’s population, or 36.5 million, moved to a new home, up from a record low of 11.6 percent in 2011.

Among young adults 25 to 29, the most-mobile age group, moves also increased to 24.6 percent from a low of 24.1 percent in the previous year. Longer-distance moves, typically for those seeking new careers in other regions of the country, rose modestly from 3.4 percent to 3.8 percent.

Less willing to rely on parents, roughly 5.6 million Americans ages 25-34, or 13.6 percent, lived with Mom and Dad, a decrease from 14.2 percent in the previous year. Young men were less likely than before to live with parents, down from 18.6 percent to 16.9 percent; young women living with parents edged higher to 10.4 percent, up from 9.7percent.

The increases in mobility coincide with modest improvements in the job market as well as increased school enrollment, especially in college and at advanced-degree levels.

Marriages dipped to a low of just 50.8 percent among adults 18 and over, compared with 57 percent in 2000. Among young adults 25-34, marriage was at 43.1 percent, also a new low, part of a longer-term cultural trend in which people are opting to marry at later ages and often cohabitate with a partner first.

Births, on the other hand, appeared to be coming back after years of steep declines. In 2011, the number of births dipped by 55,000, or 1 percent, to 4.1 million, the smallest drop since the pre-recession peak in 2008, according to Kenneth Johnson, a sociology professor and senior demographer at the University of New Hampshire. More recent data from the Centers for Disease Control and Prevention also show that once-precipitous drops in births are slowing.

“There are signs that young adults have turned a corner,” said Mark Mather, associate vice president at the Population Reference Bureau. “More young adults are staying in school, which will increase their potential earnings when the job market bounces back. It’s going to take some time, but we should see more young adults entering the labor force, buying homes and starting families as economic conditions improve.”

While poverty slowed, food stamp use continued to climb. Roughly 14.9 million, or 13 percent of U.S. households, received food stamps, the highest level on record, meaning that 1 in 8 families was receiving the government aid. Oregon led the nation at 18.9 percent, or nearly 1 in 5, due in part to generous state provisions that expand food stamp eligibility to families making 185 percent of the poverty level – roughly $3,400 a month for a family of four. Oregon was followed by more rural or more economically hard-hit states, including Michigan, Tennessee, Maine, Kentucky and Mississippi. Wyoming had the fewest households on food stamps, at 5.9 percent.

Government programs did much to stave off higher rates of poverty. While the official poverty rate for 2011 remained stuck at 15 percent, or a record 46.2 million people, the government formula did not take into account noncash aid such as food stamps, which the Census Bureau estimates would have lifted 3.9 million people above the poverty line. If counted, that safety net would have lowered the poverty rate to 13.7 percent. And without expanded unemployment benefits, which began expiring in 2011, roughly 2.3 million people would have fallen into poverty.

Some 17 states showed statistically significant increases in the poverty rate, led by Louisiana, Oregon, Arizona, Georgia and Hawaii. Among large metropolitan areas, McAllen, Texas, led the nation in poverty, at 38 percent, followed by Fresno, Calif., El Paso, Texas, and Bakersfield, Calif. In contrast, the Washington, D.C., metro area had the lowest level of poverty, about 8 percent, followed by Bridgeport, Conn., and Ogden, Utah.

“There are signs among all these measures that the multiple downsides of the Great Recession have bottomed out, which is good news especially for young people who have seen their lives put on hold,” said William H. Frey, a demographer at Brookings Institution. “There is some light at the end of the tunnel.”

Sound off!

Take Our Poll]]>http://newsone.com/2043075/us-economy-2012/feed/5economyioneafishereconomyCensus Bureau: Poverty Rate Remains At Record Highshttp://newsone.com/2037322/poverty-level-2012/
http://newsone.com/2037322/poverty-level-2012/#commentsWed, 12 Sep 2012 17:13:07 +0000http://newsone.com/?p=2037322]]>WASHINGTON — The Census Bureau reports that the number of Americans in poverty stood at 15 percent in 2011.

About 46.2 million people, or nearly 1 in 6, were in poverty. That is not statistically different from the 15.1 percent who were impoverished in 2010.

In all, the number of poor remained at record highs. The figures were better than the expectations of analysts who had predicted an increase due to persistently high unemployment.

Long lambasted for his lack of interest in the Occupy Wall Street Movement, including the questionable move to sell ‘Occupy All Streets’ t-shirts without donating any proceeds to the movement from which the slogan was derived, the hip-hop legend finally opens up about the reason he didn’t throw his considerable weight behind the issues of corporate greed and capitalistic dishonesty:

“What’s the thing on the wall, what are you fighting for?” Jay-Z told The New York Times in a wide-ranging interview.

The Brooklyn-born hip-hop king said he made his feelings clear to Russell Simmons, who was a full-throated supporter of the Zuccotti Park demonstrators.

“I’m not going to a park and picnic — I have no idea what to do,” Jay-Z said, recalling a conversation with Simmons about joining the movement.

“I don’t know what the fight is about. What do we want? Do you know?”

“I think all those things need to really declare themselves a bit more clearly because when you just say that ‘the 1 percent is that,’ that’s not true,” he said.

“Yeah, the 1 percent that’s robbing people, and deceiving people, these fixed mortgages and all these things, and then taking their home away from them, that’s criminal, that’s bad.

“Not being an entrepreneur. This is free enterprise. This is what America is built on.”

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Well, tell us how you really feel, Mr. Carter. Though it might be an unpopular sentiment, it is one that has long plagued the Occupy Movement, considered by many to have an impassioned, but hazy, uniformed agenda. Recently criticized by legendary activist and artist, Harry Belafonte, for his lack of “social responsibility” in being mostly silent on global humanitarian issues, Jay-Z has attempted to do his part in the struggle, which might explain his sudden need to criticize populism.

As previously reported by NewsOne, in addition to historic concerts at Carnegie Hall benefiting the United Way of New York City, he also founded the Shawn Carter Scholarship Foundation of which his mother, Gloria Carter, is president and CEO. The SCSF benefits those students with socio-economic hardships to further their education at institutions of higher learning. His philanthropy also includes toy drives, partnering with the UN in Africa to address the global water crisis, and his recent Made in America Fest in Philadelphia also benefited the United Way.

Even with these efforts, he is often criticized for economic greed, as well as turning his back on “the hood.”

So, does Jay-Z have a point? Is the blanket indictment of the 1-percent an attack on entrepreneurial and free enterprise?

]]>http://newsone.com/2035126/jay-z-occupy-movement/feed/3jay-z-music-festkirstenwestsavalijay-z-music-festWhat Tax Bracket Am I In?http://newsone.com/2042452/what-tax-bracket-am-i-in/
http://newsone.com/2042452/what-tax-bracket-am-i-in/#commentsWed, 05 Sep 2012 21:33:31 +0000http://newsone.com/?p=2042452]]>What tax bracket am I in? It’s a question many Americans are asking themselves right about now, even though tax day—April 15, 2013—is a long way away. Below is a chart of the projected tax brackets for 2013, as posted on MyDollarPlan.com and numerous other websites.

Tax Rate

Single

Married Filing Joint

Head of Household

10%

Up to $8,750

Up to $17,500

Up to $12,500

15%

$8,751 – $35,500

$17,501 – $71,000

$12,501 – $47,600

25%

$35,501 – $86,000

$71,001 – $143,350

$47,601 – $122,850

28%

$86,001 – $179,400

$143,351 – $218,450

$122,851 – $198,900

33%

$179,401 – $199,350

$218,451 – $241,900

$198,901 – $222,750

36%

$199,351 – $390,050

$241,901 – $390,050

$222,751 – $390,050

39.6%

Over $390,050

Over $390,050

Over $390,050

The figures are based on President Obama’s budget proposal for 2013, and if the administration gets its way, the top tax rate will increase from 35 percent to 39.6 percent. The reason for the increase is that several tax cuts enacted under President George W. Bush are set to expire. Experts believe Congress won’t vote on the matter until after the 2012 presidential election, but if the Bush cuts are not extended, will mean higher taxes for most individual payers. A summary of the major changes is available at Mondaq.com.

As NovelInvestor.com points out, the increase would amount to $500 billion, or 3.4 percent of the U.S. GDP (gross domestic product). Democrats and Republicans are predictably split over the issue of tax increases, and those on the conservative side of the fence believe higher taxes will hurt job growth and corporate spending.

Ever wonder how the current system came into being? The IRS created tiered tax brackets in 1913. The agency’s aim was to create revenue for the government while not overtaxing people who make less money, according to tax-brackets.org. As the website points out, the federal government later introduced dependent credits and deductions such as the Earned Income Tax Credit (EITC) to promote fairness for the lowest-earning families. As a result, the website reports, some 46 percent of Americans wind up paying no income tax.

]]>http://newsone.com/2042452/what-tax-bracket-am-i-in/feed/11ionenewsoneTaxes: Should I Do Them Or Hire A Professional (thumbnail)Is Social Security Still A Good Deal?http://newsone.com/2042457/is-social-security-still-a-good-deal/
http://newsone.com/2042457/is-social-security-still-a-good-deal/#commentsMon, 06 Aug 2012 14:15:33 +0000http://newsone.com/?p=2042457]]>People retiring today are part of the first generation of workers who have paid more in Social Security taxes during their careers than they will receive in benefits after they retire. It’s a historic shift that will only get worse for future retirees, according to an analysis by The Associated Press.

Previous generations got a much better bargain, mainly because payroll taxes were very low when Social Security was enacted in the 1930s and remained so for decades.

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“For the early generations, it was an incredibly good deal,” said Andrew Biggs, a former deputy Social Security commissioner who is now a scholar at the American Enterprise Institute. “The government gave you free money and getting free money is popular.”

If you retired in 1960, you could expect to get back seven times more in benefits than you paid in Social Security taxes, and more if you were a low-income worker, as long you made it to age 78 for men and 81 for women.

Wells Fargo and Radio One are joining forces to help empower you to take charge of your financial future. We have assembled a team of experts to answer your important financial questions.

]]>http://newsone.com/2026686/aspirations-empower-your-financial-future-with-good-credit/feed/2ionedcharnasAspirations: Helping You Empower Your Financial Futurehttp://newsone.com/2025003/aspirations-helping-you-empower-your-financial-future/
http://newsone.com/2025003/aspirations-helping-you-empower-your-financial-future/#commentsThu, 12 Jul 2012 19:54:55 +0000http://newsone.com/?p=2025003]]>Your browser does not support iframes.
]]>http://newsone.com/2025003/aspirations-helping-you-empower-your-financial-future/feed/1WellsFargo_Aspire-thumbionenewsoneThe Advantages Of Purchasing Long Term Care Insurancehttp://newsone.com/1530725/the-advantages-of-purchasing-long-term-care-insurance/
http://newsone.com/1530725/the-advantages-of-purchasing-long-term-care-insurance/#commentsThu, 15 Sep 2011 21:24:29 +0000http://newsone.com/?p=1530725]]>I remember the last years of my grandmother. Before she lost her ability to walk, she would walk down steep steps with a bad hip that severely needed replacing. She would have to start the journey down the stairs around 3:00am in order to get downstairs by 4:00am. Why would she go down so early…to make the Sunday dinner of course! Her hands were so impacted by arthritis she could hardly hold the spatula to stir the macaroni and cheese. Due to the lack of feeling in her hands, she would be burned repeatedly but would never know until someone else noticed the scare. As hard as it was for her to cook that meal…nothing could stop her from doing for her family.

My other grandmother was the same. My last memory of her was her lying in a hospital bed hardly able to open her eyes. Upon the sound of my voice she used her last bit of strength to open her eyes, look into mine, and mouth the words “I love you”.

Where would I be without their knowledge, wisdom, strength, and never waning desire to take care of their family until the day they met their maker?

“Respect for your elders” seems to be a term that nowadays is taken very lightly. A study done by the minority staff of the Special Investigations Division found that 1 out of 3 nursing homes were cited for abuse over a two year period. Recently, according to government figures, one out of every four nursing homes every year is cited for causing the death or serious injury to a resident. A CBS analysis of the federal government’s nursing home inspection database found that more than 1,000 homes were cited recently for hiring staff with a history of abuse.

I could go on and on finding figures that would support that many of our elderly are treated with low regard or respect. Where have we come as a nation where we can’t show the utmost regard to those that have paved the way before us? I refer to the Bible that states:

Likewise, ye younger, submit yourselves unto the elder. Yea, all of you be subject one to another, and be clothed with humility: for God resisteth the proud, and giveth grace to the humble. 1 Peter 5:5

This is our duty to submit to our elders, and to tend to their needs. They have worked and molded our society, and deserve better than to be thrown into a random nursing home to wither and die. This is more than a moral decision, but is a financial decision as well. There are many out there who are put into these low conditioned nursing homes not because of choice, but because of the failure to adequately plan. (I am not saying that all nursing homes are bad, for there are many which are highly qualified. You must take the time to research the home in which you choose. Make sure that it will provide the appropriate care and a happy, comfortable living environment for your loved one.)

Why do we budget, plan, save, and try to be sound financial stewards? There are only two reasons to invest. Family/community responsibility, and to allocate for future needs (both planned and unplanned future needs). Your parents and the elders that you love and care for fit into this category. We must consider their needs in our plans for the future, should their resources ever fall short.

How do we do this? Well the most common way is to purchase a Long Term Care (LTC) policy. With medical care getting better and better, many individuals are living beyond their 90s. However, increased life expectancy does not mean that many older individuals do not have serious health problems, because many do. An LTC policy pays for the kind of care that is needed by individuals who have chronic illnesses or disabilities. They can cover the cost of nursing home care, and even provide coverage for home-based care. Unless you have upwards of $60,000 that you can afford to spend annually on a nursing home (average period of stay is three years), then you will benefit from this type of policy. (The average cost for nursing home confinement is about $3,300 per month, and can be as high as $5,000 per month. These figures are going to continue to increase.)

Medicare is a viable option for this care as well; however, you must know that there are certain expenses that are not covered under Medicare or there supplement policies. Medicare will cover nursing home care only if it is part of the treatment for a COVERED injury or illness, but care needed because of aging is NOT covered by Medicare or Medicare supplements. Coverage is extremely limited for skilled nursing care (the care must immediately follow a period of hospital confinement, and no benefits are provided after the 100th day). If you qualify for Medicaid, then you can receive payments for nursing home care (you must qualify for this program and be “needy”). What usually happens is that most people pay for their own nursing home care, and eventually turn to Medicaid when their life savings are gone. I don’t want to see this happen to any of you.

Although I do recommend you purchase an LTC policy, you need to be careful of how much you purchase. Insurance was meant to be a COMPLEMENT to your savings. Ideally, each of us should save up until we have enough saved to cover the bill ourselves (without depleting our savings). However, in this world of forever increasing prices, we all know that it can be too tall of an order to fill. This insurance does not alleviate you from the responsibility to cover as much as possible on your own. Not only is this irresponsible to rely on insurance instead of saving, but you could end up paying unnecessarily high premiums.

In the meanwhile, we must continue to love and show respect towards are elders. Everything we are is because of them. I will leave you with this story.

There was family. It consisted of a mother, father, son (Jonathan), and an elderly grandfather Joe. Joe was 85 and in his last years. Every day the family would eat dinner together at the same time. Joe, because he was getting old, didn’t have the dexterity that he once had. He would try to pick up his glass of milk that he loved to drink, only to drop the glass and spill the milk on the table. His daughter began to get tired of wiping up after Joe. Joe would have a problem with holding liquids in his mouth, and unknowingly would drool at the table. His daughter began to get weary of seeing the drool and grew more and more disgusted everyday. Joe didn’t have the coordination that he once had, so when he went to pick up his plates, he would sometimes drop them. His daughter and son in-law began to get tired of cleaning up the broken glass on the floor.

One day the daughter was fed up, and when Joe came down to eat at the normal time, he noticed that his normal place wasn’t set at the table. When he asked if there had been an error, his daughter and son in-law both pointed to the back of the room where there stood a card table. This card table was set with extra napkins for him to wipe his mouth, and clean any spilled milk. Also, unbreakable wooden bowls were placed there in case he dropped his plate of food. Joe was upset by this, but he understood. He sadly moped over to the card table to eat his dinner.

The family ate this way for the next few months. Joe began to feel more and more distant from his family, and unwanted. This dinner time was his only time where the entire family was home at the same time, and the only time he felt he could see all the ones he loved. He hated sitting at the card table, but didn’t want to be a burden on anybody. So day after day, there he sat. He wiped his own mouth, cleaned his own milk, and picked up his own wooden bowl.

One afternoon, an hour after dinner, the son was playing in the living room. Joe had become accustomed to going to his room after dinner in silence, so he was assuming his normal ritual. The mother walked into the living room, and saw a 2 by 4, a hammer, a few nails and her 10 year old son in the middle of the mess. Well, the mother immediately ran into the room, and grabbed her son taking him away from those tools.

“You could have been injured!” screamed the mother. “Why would you go into the supply room and grab all of those things?!”

The son looked at his mother with confusion and began to cry. He whined out, “I was only trying to help!”

“You aren’t old enough yet baby to use those tools. You could have been seriously injured. We just don’t want to see you hurt okay baby?” The mother hesitated for a second. “Baby, what do you mean trying to help?” The child continued to cry, and didn’t hear the mother. She asked again, “What do you mean trying to help Jonathan?”

Jonathan looked up at his mother with sad eyes and said, “I was going to make some wooden bowls, so that you and dad could use them when you are older.”

The mother, with tears in her eyes was at a loss for words. She began to feel all the things that Joe had been feeling. She set Jonathan down and began to cry. How could she have been so cruel and misunderstanding?

Needless to say, that marked the last day that Joe sat in the back at the card table. He was welcomed back to the family table, and the mother gladly wiped his chin, cleaned his milk, and picked up his broken glass.

Respect for our elders is a critical part of financial literacy. I will leave you with three quick tips on how to purchase long term care insurance.

#1 Shop Around – Make sure that you shop around and get comparison quotes. You should have a long-term care specialist explain the differences in benefits and premiums. Try not to purchase benefits that you don’t need.

#2 Cheap Is Not Always the Best – Be sure to do your research on the company’s experience in the market. Many companies have a history of rate increases which can be detrimental during a life of fixed income within your Golden Years. Many companies offer rate guarantees, which can be a plus. Just because a policy is cheap, doesn’t mean it is the best for you…check the company’s rating.

#3 Know What You Are Purchasing – Some policies don’t offer coverage for home health care, but do offer coverage for care in a long term facility. Also, there are many various definitions for the word “facility”. What is the policy’s definition, and how comprehensive is the policy? Make sure that you are aware of exactly what you are purchasing with your hard earned dollars.

Author: Ryan Mack, President of Optimum Capital Management, LLC

]]>http://newsone.com/1530725/the-advantages-of-purchasing-long-term-care-insurance/feed/7grandmother-comforting-granddaughterionenewsonegrandmother-comforting-granddaughterParents Should Teach Their Children How To Manage Moneyhttp://newsone.com/1530405/youve-gotta-love-the-kids/
http://newsone.com/1530405/youve-gotta-love-the-kids/#commentsThu, 15 Sep 2011 20:14:47 +0000http://newsone.com/?p=1530405]]>I remember my mother used to take me to the ATM machine when I was younger (about 7-8 years of age), and let me push the buttons. I was fascinated by how with the simple push of a few buttons on this magic machine would spit out whatever amount of money I told it to. Where did this money come from? What an awful job to be that little man just sitting there in the wall, waiting all night to give money to whomever comes up and pushes the buttons? Well, obviously, there was no little man. The machine was by no means magic, but directly linked to the checking account in which my mother’s hard earned money rested.

How was I to know that the result of hard work is money stacked in the ATM? This same scenario occurs all the time. Unknowingly, parents miss valuable opportunities to teach their children what it means to earn and manage your money. Money, and the concept of earning and managing money, is a process that must be respected. As soon as the child is ready for school, he should be given his own income to manage. It doesn’t have to be a lot of money, but enough to show him the importance of earning, saving, and giving the money he/she has made. The amount of the income that you give your child is not as important as how he handles it. If little John Boy wants to cry to get that new toy from the shelf at the toy store, a Happy Meal from McDonalds, or a drink from the grocery store, let him blow his entire budget on the item. When the “law of natural consequences” takes place, and he realizes that he has blown his entire income on the first day for an unwise purchase, don’t think about bailing him out. Create some boundaries and offer advice on how the money should be spent, but give the child freedom within these boundaries.

I started working as a golf caddy when I was 12. It was the beginning of the summer and my only goal was to make $100 (I had never had as much as $100 dollars of my own money). I was a short caddy, a little clumsy, and was viewed as the runt of the caddy shack. Consequently, due to lack of popularity, it took me a little longer than the average caddy to make my goal. However, after 2 weeks of long hard work in the sun, and days of not getting picked to work, I reached my goal! The first place I went was Baker’s Square to buy my very own Lemon Supreme pie (with the cherry on top). I then went to McDonald’s to buy my very own Value Meal without any permission from my parents because I could. Later, while walking down 8 mile road I saw some of the best looking short sets that I had ever seen. They were layered with stripes with just about every color you could think of with the short and shirt to match exactly. As Witherspoon said in Boomerang, “You got to coooooordinate!” Of course, I had to purchase three pairs.

Well, two days later, my money was gone and all I had to show for my hard work was a sick stomach full of pie, two Big Macs, and three of the ugliest summer outfits one would ever see (I can now freely admit they were ugly but I should have known when my grandmother saw me and all she could say was, “Wow baby…that outfit sho’ is colorful!”). I think I cried at the feeling of an empty pocket when they used to be so full! I didn’t know the value of setting a budget. When you give your child an income, his allowance or whatever you call it, teach them how to manage or budget their money. A good idea, as children understand visual examples, is to devise a system of three boxes or jars. Label each box separately- Give, Save, and Spend. Make your child put a portion of his income into each box. Even a five year old can see and understand this method. As the child matures involve him in the family budget. As he gets older, perhaps in his teenage years, have him establish a written budget. We must teach our youth to be wise consumers. Have discussions and conversations teaching your children about shopping skills, the difference between needs and wants, and if you are in a spiritual household the benefit of waiting on the Lord to provide resources when the time is right.

The concept of saving money should be taught as well as the value of compounding interest. Have him open a savings account, and walk him through the statements. Calculate just how much money should be available to him if he continues to save money in this account at X% rate 5, 10, 20 years down the line. If the child is younger, he might not appreciate or understand saving for college, but he can understand saving for that new toy he wants. If he wants it badly enough, teach him the benefits of saving for it. You will perhaps discover that the new Power Ranger will not be as important as it once was.

Debt, a problem that plagues us all, should also be taught as soon as possible. For some of the bigger purchases such as bikes, video games, or designer clothing, loan your child the money. Draw up a credit agreement with interest. When the loan is paid off, give special attention to the relief that is felt when a debt is paid.

Contrary to popular belief, life isn’t all about money. It is just as important to learn the value of giving. Money comes and goes, but people are more important then any amount of money they will ever make. If you can use your money to help people, then that money will come back to you tenfold. Giving to the church, giving to a charity, a family that needs food, etc. are all opportunities to involve your child in this wonderful spirit of giving.

The growth of a tree starts from the roots. We all will agree that our children are the roots and foundation that determine the future and the direction of our society. If we can reach and teach them, tomorrow will be a better and brighter day. “And he shall be like a tree firmly planted by the streams of water, ready to bring forth his fruits in its season; his leaf also shall not fade or wither, and everything he does shall prosper.” Psalm 1:3

Written By Ryan Mack, Author of Living in the Village and President of Optimum Capital Management, LLC

]]>http://newsone.com/1530405/youve-gotta-love-the-kids/feed/13Picture 4ionenewsoneLearning Lessons In A Volatile Economyhttp://newsone.com/1489135/learning-lessons-in-a-volatile-economy/
http://newsone.com/1489135/learning-lessons-in-a-volatile-economy/#commentsThu, 25 Aug 2011 22:03:18 +0000http://newsone.com/?p=1489135]]>For years individuals, businesses, and the government borrowed excessively based on what they hoped to earn tomorrow. In the latter part of the George Bush II era many believed, through the excessive use of debt, to have found the magic fountain of wealth. However, the rug was pulled from beneath all of us when the housing crisis started near the end of 2007. The housing crisis led to a credit crisis, and that led to an overall decline of the US economy which increased the levels of unemployment to the tune of as much as 750K jobs lost per month.

President Obama entered office and instituted a stimulus package that while successful in stopping the bleeding, did not correct the problems in the economy (housing market, credit crisis, high unemployment rate, etc.). However, the stock market acted as if all problems were resolved as the Dow Jones went from a low of around 6,600 in March of 2009 to a high of 12,800 in May of 2011.
Along comes the smokescreen debate of a debt ceiling crisis. The debt ceiling is a cap which is set by Congress on the amount of debt the federal government can legally borrow. Essentially, every time congress votes on legislation that increases spending or decreases taxes, they vote to increase the debt ceiling; the debt ceiling debate is about whether or not to pay the bills the country has already incurred. I call this debate a smokescreen because prior to the presidency of Barak Obama, increasing the debt ceiling has traditionally been a procedural vote that got no publicity. Since 1962 the debt ceiling has been raised 74 times – Reagan raised the debt ceiling 18 times, and the debt ceiling has been raised 10 times since 2001 under George W. Bush. If the debt ceiling was not raised by the beginning of August, 2011 the US would have defaulted on its debt for the first time in history, an event which would have been cataclysmic for the economy. The GOP decided to use this as a political bargaining chip to turn this procedural vote into an opportunity to demand spending cuts and risk economic collapse if those demands were not met.
After the debt ceiling debate was settled, Wall Street traders suddenly remembered the fragile nature of the economy; the same issues and problems (housing crisis, credit crisis, and high unemployment) that existed before the Dow Jones reached a high in May, 2011 were still with us. This is when the Dow Jones began to tumble. After its initial decline, Standard and Poors made the decision to downgrade the US credit rating for the first time in US history from a AAA to a AA+. This caused further decline in US equity markets and this brings us to the most important question of the day…what can you do to protect yourself in this volatile economy? Here are some steps:

• DON’T PANIC! The worst thing you can do in this economy is to make a knee jerk decision which either locks in losses or takes you away from your long term investment strategy. Volatile price swings will become very common but the 600+ point drop recently experienced in the Dow Jones will be a small blip on the screen which you will hardly remember 5 years from now unless of course you panicked and locked in some losses! If I told you they were selling shoes for 200% more than retail, would you go running to buy them? Of course not. What if I told you about a 75% OFF shoe sale at your favorite store…would that interest you? It might! Think of stocks as you might think of a shoe sale. If you have a long term investment strategy, and you like the investments, cheaper prices are a good thing! Keep that dollar cost average strategy going and make sure to continue to have that semi-annual meeting and quarterly call with your advisor to be sure your asset allocation is appropriate for your age and risk tolerance.
• FOLLOW THE NEWS: Now more than ever the news coming from Washington is playing an important role in your finances. The announcement of the Fed Chairman Ben Bernanke to keep rates low through 2013 means the variable rate on your credit card which it attached to prime rates will stay reasonably low. US treasury yields hitting January 2009 lows means mortgage rates should also be low as they are tied to US treasuries. The US is still the safest place to park funds and I would expect that rates should remain relatively low for at least the next 6 months barring an unforeseen incident. Take note: http://www.moneymovement.org, finance.yahoo.com, http://www.bloomberg.com,and http://www.morningstar.com are all examples of sites you can use to get good financial tips and stay current on financial news that could impact your finances.
• PREPARE FOR OPPORTUNITY: It is said that the Chinese symbol for crisis means danger AND opportunity. Now is the time you should be preparing yourself to take advantage of the real estate market and any other opportunities that a volatile market presents. In this credit crisis, those who will benefit most are those who have high liquidity with their money and good credit scores. So to prepare yourself here are some examples of what you should be doing right now:
• Go to annualcreditreport.com and get your free credit report to start repairing and/or building your credit.
• Put a budget together to establish your surplus (income minus expenses) each month. From your budget you can derive a goal of establishing an emergency fund which should comprise 9-12 months of living expenses in a high yield savings account (6 months of cash and 3-6 months in a total line of credit).
• Gather your family and close friends to discuss forming investment clubs which can focus on stocks and/or real estate property. Pooling funds can help eliminate the problem of low liquidity in your household plus it will mitigate the risk of full ownership. Be sure to create the appropriate contacts and use the appropriate software…your advisor should be able to assist in this process.
• Take some night courses at the local college. Highly skilled workers who can provide high productivity are a premium in this market and as layoffs continue you might be able to capitalize by enhancing your skillset or at least ensure your job is secure.
• Research the needs in your area, look within yourself to determine your passions, and combine both your needs and your passion to create a new business on the side. Over half of the S & P 500 companies were started during difficult economic times like these…perhaps it is time to get off that plantation and start your own company!
• HAVE FAITH: Now more than ever in this depressed economy, we need a heavy dose of faith. Faith isn’t some pie in the sky emotion that one only displays on Sundays. Faith is a living, active, vital component of every household. If you take a dose of believing and equivalent dose of acting on that belief, you have a recipe for faith. Below are some concrete examples of how to use faith in your daily living as well as your financial strategies:
• If you believe you are in danger of foreclosure, take action with hud.gov to get a credit counselor to help save your home.
• If you believe that equities markets are still a little too risky, take action and talk to your advisor about other avenues that can provide a decent yield in your portfolio like municipal bonds which can provide you a 4% TAX FREE yield.
• If you believe there could be a chance that we will see inflation, take action and purchase GLD (SPDR Gold Trust) which is the exchange traded fund for gold to hedge against inflation.
• If you believe you have the ability to purchase an investment property, take action to build your savings, improve your FICO score, and prepare yourself properly to be a landlord.
• If you believe your family has too many resources and brilliant minds to suffer through a recession, take action to gather your family for an empowerment meeting every six months to discuss how to effectively use family resources to find jobs, establish college funds, and fulfill financial goals of your family.

By the numbers, we are not technically in a recession as a country. However, many in our communities feel like it is a depression. Each time you make a wise financial decision you add to an overall pool of fiscal responsibility that will help rebuild our communities, and minimize the greed and fiscal irresponsibility that brought our communities to an economic halt. People in all communities have suffered a lot losing billions of dollars in net worth, but through hard work and prudent action, we will see brighter days in our futures.

]]>http://newsone.com/1489135/learning-lessons-in-a-volatile-economy/feed/1burning moneyionenewsoneburning moneyIf You Want To Purchase A Home, You Should Act Your Own Wagehttp://newsone.com/1486175/the-new-home-ryan-mack/
http://newsone.com/1486175/the-new-home-ryan-mack/#commentsThu, 25 Aug 2011 14:20:18 +0000http://newsone.com/?p=1486175]]>It seemed like another regular day in the life of the Mack family. It was Saturday morning, and my mother had just cooked breakfast for my brother and me. After cleaning the apartment, it was time for her to take us on the normal Saturday errands. The post office, the dry cleaners, and the grocery store were among the places that we had to pay a visit to. However, this Saturday called for a slightly different change of plans. The lease on the apartment was getting close to expiring, and Carol had been having dreams of owning her own house. So, instead of driving straight home, my mom took out her paper of previously circled properties, and drove past two or three of them to inspect the neighborhood. As she tapped on the window towards properties of preference, being only nine at the time, I remembered becoming increasingly more impatient as she prolonged my snack time. My mother had the dream that millions in the US have…the dream of owning your own home.

To own your own home is not a small venture, and requires a lot of thought. I am sure that many would agree that the process is very long, tedious, time consuming, and perpetually costly. Whichever home you purchase, you must make that decision responsibly. The amount that you pay on your home, and the payments that you are required to make to retain your property will have a huge effect on your future financial state.

If you are not wealthy but want to be someday, never purchase a home that requires a mortgage that is more than twice your household’s total annual realized income. (The Millionaire Next Door- Thomas J. Stanley and William D. Danko)

While I believe that this over-simplifies the situation, the thought behind it is very true. If you want to purchase a home, you should act your own wage. Make sure that you purchase a home within the amounts that you can afford to pay. I have seen many people go out to look for a new home without any idea of exactly how much they can afford to pay. I urge every one of you to take some time to sit down and do the math before beginning the hunt to look for a home. The bank doesn’t know your situation better than you do, so don’t let the bank do the math for you. Remember that every one who has ever filed for bankruptcy or foreclosure was initially approved for a loan from the bank. Don’t let the mortgage broker do the math, as he is pushing for the highest loan to make the most commission. He will find a way to stretch you well beyond your means, making a nice commission, while you loose your sanity and happiness trying to over-extend your budget to make your mortgage payments. “The rich rule over the poor, and the borrower is servant to the lender.” (Proverbs 22:7) Simply buying a home should not be your only goal, but rather you should be buying a home that you can keep and live in.

To live above your meansby purchasing a house that is out of your range has other negative ramifications as well. People fail to realize that when you purchase a home, you are also entering into a more extravagant lifestyle. Your neighbors will drive more expensive cars, go to more expensive private schools, and live lifestyles that they are more adapt to handling. There can be a lot of pressure when put in a situation to want to “keep up with Mr. and Mrs. Jones”. If you purchase a piece of property that is more suitable to your income level, you will find that there is less financial pressure to conform. Just keep in mind that there could be a person who really is wealthy, living next door who bought his $300,000 home AFTER he/she became wealthy enough to afford it.

As stated, before you jump the gun and purchase that house, make sure you do the numbers. I can’t emphasize this enough. Below is a worksheet for you to follow. If you are able to fill in this worksheet, you will be ahead of the game when it comes to planning the purchase of your home. This worksheet was derived from The Courage to Be Rich by Suze Orman.

Monthly House Payments

Price of the house

$__________

Multiplied by the % of sales price county charges for property taxes.

x__________%

Equals yearly property taxes.

$__________

Divide by 12 to get monthly property taxes.

$__________

Add $100 for home insurance

+ $100

Add mortgage payment

$__________

Add PMI premium (mortgage balance x .006/12)

+__________

Total monthly payments

$__________

Monthly Income

Take home pay

$__________

Social Security payments

$__________

Interest and dividends

$__________

Miscellaneous

$__________

Total Monthly Income

$__________

Subtract your total monthly payments from your total monthly income:

$__________

Additional Expenses

Utilities, gas, oil

$__________

Firewood, if applicable

$__________

Pool maintenance, if applicable

$__________

Extra gasoline, if you have to drive longer to work

$__________

Gardener, landscaping costs

$__________

Garbage removal

$__________

Water treatment of drinking-water delivery

$__________

Other

$__________

Total additional expenses

$__________

Subtract the additional expenses from remaining income figure:

$__________

If you have sufficient money left over after you have successfully filled in the table, then you should be able to purchase your home.

One good way to find out if you will be able to purchase your home before you buy it, is to purchase an imaginary house. Calculate how much you think you will be able to afford, then immediately open a savings account. With your house fund, put a down payment into your new account that will come as close to 20% as you can afford. From then on, each month put the calculated mortgage for your new imaginary home in the account. With out fail, make mortgage payments in your savings account for either six months; or until you have the 20% down payment that you will need for your imaginary home. If you find that you are able to make these payments, and still are able to live comfortably without over-extending your budget, then you are on your way to having that new house.

If you notice in the monthly house payments section of the table, you see a payment labeled PMI. This stands for Private Mortgage Insurance. This is the insurance that protects the mortgage lender from financial loss if the borrower decides that he won’t/can’t make the mortgage payments any longer. You can avoid this amount if you have 20% of the down payment when you purchase the home. If you have as much as 2% less then the 20% requirement, then you have to pay PMI. To figure out how much you will have to pay for PMI for the first year, multiply your mortgage by .006. This will be your first year payment (up front). If your mortgage is $100,000 then your PMI for the first year will be $600. If your mortgage is $400,000, then your PMI for the first year is $2400. This payment does not end the first year. Each month, in addition to your mortgage payments, you are required to make an additional PMI payment. This additional payment is calculated by dividing your total initial PMI payment by 12. So for the $100,000 mortgage, you would have to pay $600 up front, and $50 per month. For the $400,000 loan, you are required to pay $2,400 up front and $200 per month (again, this is in addition to your regular expected mortgage payment).

Many people fail to realize that this payment should not last for the duration of the loan. You are only required to pay PMI up until you have established 20% equity in your home. At this point, it is YOUR responsibility to call your lender and have them seize your payments. If you don’t call them and tell them, you will continue to be charged PMI on your loan. Before you sign any papers, make sure that your bank allows the PMI payments to be cancelled. Before signing the loan, have the lender put in writing that they will cancel the PMI payments when you reach the 20% equity mark. Even if the lender agrees to this in writing, make sure to call and remind them to cancel your PMI payments. They have no incentive to do it themselves. Upon canceling, you will be able to have the initial outflow of your PMI payment returned to you. Don’t forget to ask for this money back.

You should be careful of those banks that claim not to charge PMI. Many times banks will load PMI charges into the original rate of the loan. For instance, a bank will say that they will charge you a 7.5% interest rate, and you don’t have to pay PMI no matter how much you initially put down. However, they fail to tell you that they have added another 0.5% to the loan to compensate for the lack in PMI payments (they make a 7.0% loan into a 7.5% loan). Essentially, you have locked paying PMI for the duration of the loan, instead of up until you have reached the 20% equity mark of investment in your property.

Have you fully inspected that house to make sure that there aren’t any other traps that can translate to more money that you have to pay in the future? Have you checked for structural damage, termites, high asbestos levels, or flaking lead based paint. A simple checking of the yellow pages or a call to your real estate attorney to recommend a certified building inspector will help. Did you flush the toilets to test the water pressure, turn on the water in the kitchen and bathrooms to see how long it takes to get hot, or test to see that the appliances are in working condition? How old is the water heater, furnace, air conditioner, washer, refrigerator, washer, dryer, dishwasher, or stove? Are they under warranty, and if so does the seller still have the paperwork? How up to date is the electrical system? These and many other questions like them can save you a lot of headache and unnecessary cash outflow in the future.

Many people have discussed the possibilities of paying off your mortgage early. I have always been a huge fan of early mortgage payments. However, you shouldn’t start paying down your mortgage until you have established an adequate emergency fund. This is because you need to access liquidity in case of unexpected happenings. Also, paying extra principle should fall behind maxing out your contributions for your tax deferred assets such as your IRA and your 401k. There are some that say that paying extra principle contributes to extra equity that isn’t readily accessible, and that you are making a decision to not diversify your portfolio. There is also the argument that if you have a low-interest mortgage, and an opportunity to invest the principle payment in an investment with a higher return than the tax-effective rate of your mortgage interest, you should probably do that. These are all valid arguments. However, there are many reasons why I still prefer to pay your mortgage early provided that your emergency fund and tax deferred assets are in order.

If you have excess cash, and that makes you feel safe, remember that early mortgage payments have not disappeared but are in your home. For one, if you are older, there are many states that consider your home an exempt asset when it comes to qualifying for Medicare, regardless of how much equity you have in it. Also, you can always apply for an equity line of credit (preferably while you are still working and have an income). If you should use this option, make sure that you get a line of credit where you can write a check against it only if you need it. This way you will have access to the cash, but aren’t paying interest on it until you actually use it. Chances are, payments for this line of credit will be less than your mortgage payments would have been. If you are in retirement and have one less major expense to worry about such as a mortgage payment, this is one of the richest feelings there is.

There is no guarantee that you will receive a higher return than your mortgage rate in the stock market. To some, paying off that mortgage early might not make sense. However, I rate peace of mind higher that any other economic rational out there. If we can all strive for that day when we are all debt free, we can then work to put full attention towards our savings. So why not opt for that 15 year mortgage instead of that 30 year that is so popular? You can also find out from your financial planner the amount that you should increase your monthly payment to cut your mortgage in half. Many people prepay the next month’s “principal” in addition to your regular monthly payment. Imagine how much more modest your living cost will be without any debts or house payments. “Let no debt remain outstanding, except the continuing debt to love one another, for he who loves his fellowman has fulfilled the law.” (Romans 13:8)

We all want to live the dream of owning our own home. To come home to something that we own is a magical feeling. This comes at a very hefty price, however. It is very wise to take the time to make this decision wisely. Cross every “T”, dot every “I”. In the end it will be worth the time invested.

]]>http://newsone.com/1486175/the-new-home-ryan-mack/feed/6African-american-couple-buying-homeionenewsoneAfrican american house saleThe Disadvantages Of Leasing A Carhttp://newsone.com/1479715/the-disadvantages-of-leasing-a-car/
http://newsone.com/1479715/the-disadvantages-of-leasing-a-car/#commentsTue, 23 Aug 2011 20:47:57 +0000http://newsone.com/?p=1479715]]>Have you ever seen someone who was always driving a new car almost every other month it seemed? I remember, right after I graduated college, I had a few friends like that and always wondered where they got the money to get into the “flipping” cars game. They would have the newest of the newest models of the most popular cars. Meanwhile, here I was driving my 10 year old Honda Accord with over 100,000 miles, an air conditioning system that only blew hot air, a driver side window that wouldn’t roll all the way down, a passenger side door that you could only open from the outside unless you knew magic technique to operate the broken handle, and occasionally I had to literally push it and jump in just to get it started. I didn’t get as many chicks as the others with the “phat” rides got…I wonder why?

As I got older and saw that many of those who were in the “flipping” car game were still living at home with their mothers because they couldn’t afford to move out. On the other hand, I was operating my own company while living on my own in New York City. They were leasing their cars while I had owned mine outright. When it came time to investing in my new business, that lack of a car note made a huge difference…thank God I had saved! There is a huge difference between leasing and owning your own car and since I am a strong advocate of the “ownership” mindset let me explain to you the advantages of owning your car as opposed to leasing it.
When you lease a car the two main charges are a depreciation charge and a finance charge. The depreciation charge is the price that the vehicle has gone down while you were using the vehicle. The finance charge is the interest rate that you are paying on the term of the lease. Nothing is going towards anything of real value to you. Depreciation is only an accounting expense that just so happens to be the most costly in the earliest years of the vehicle, which just so happens to be the time that you are leasing the vehicle.

Cars depreciate 25% as soon as you drive them off of the lot. If you purchased a car for $20,000, as soon as you drive it off the lot it is only worth $15,000. This is why those millionaires who really understand the value of a dollar will purchase a pre-owned vehicle (1-3 years old) that has already taken its biggest hit of depreciation. This is why you will never hear of them leasing a vehicle because they understand the value in ownership and renting.
I am not saying that there are no benefits to leasing a vehicle. If you lease a car you will probably have lower monthly payments, they require little to no down payment upfront, you are never in a position when you owe more than what the car is worth, and if you are business owner you may be able to get some tax advantages if you use the car for business purposes. I get it.

However, most people who lease vehicles go for years of always having a car payment and not having anything to show for it but a lower savings account. Depending upon the type of lease that you have when your lease term is up you either hand the keys over to the dealership and lease another vehicle, or you finance the remaining value of your car to work towards owning it and go from lease payments to loan payments. The deal that you thought you’d get if you decide to purchase the vehicle after your lease contract is up is never as good as you would have thought it would be. This is because in a lease the most expensive portion of the payment that you are paying for is the high depreciation expense and very little if nothing towards the value of the vehicle.

Other disadvantages of leasing are as follows:

• Terminating the lease can be very costly
• You don’t own the vehicle so you cannot make any major changes to the car, paint it, or add equipment to it.
• Mileage restrictions and putting too many miles on the car can be very costly if you go over the allowed limit.
• Insurers usually charge higher coverage costs for leased vehicles (their reasoning: if you don’t own the car you are less likely to take good care of the car than someone who does own the car).

When you lease a car you are essentially committing to a lifestyle of renting your car which ensures you will always have a car note. Wouldn’t it be nice to purchase your brand new Toyota with a 5 year note, pay it off in three years, and in save up the amount you would have been paying towards a car note for the final two years into your savings account? Little tactics like this over a lifetime add up towards a fruitful retirement where you can enjoy your golden years without having to work for the golden arches. Start your tomorrow today and let’s shop smart for that new car!

Ryan Mack, Author of Living in the Village and President of Optimum Capital Management, LLC

]]>http://newsone.com/1479715/the-disadvantages-of-leasing-a-car/feed/30lease carionenewsonelease carFinancial Planner: The Greatest Investment Is In Your Communityhttp://newsone.com/1472805/the-greatest-investment-your-community/
http://newsone.com/1472805/the-greatest-investment-your-community/#commentsFri, 19 Aug 2011 18:42:45 +0000http://newsone.com/?p=1472805]]>In my years as a Financial Planner, I have fielded many questions. One of the most frequent questions I have been asked is, “What is the best area to invest in this market?” Many state that the equity market is poised for a strong rally in the long run. Others state that the bond market is very attractive. What about the real estate market? Shouldn’t it be due for a recovery soon?

I have heard all the arguments from the above asset classes and depending upon who you talk everyone seems to have an opinion about the best place to invest.

There is another area of investment which is not talked about as frequently. This area of investment has TREMENDOUS potential and almost unlimited upside. Doubling, and tripling your investment in this area would be an enormous understatement. “What is it?” you ask.

I will give you a clue…you wake up everyday and go to sleep in it. You eat in it, you take your children to school in it, you attend block parties in it, and many of your family and friends may also live in it. If you haven’t guessed by now, I am referring to the community. That’s right…an investment in your community is the greatest investment you can make. By investing in the community, what are the returns for me, you ask? How does one invest in a community? There are many ways you can invest in your community. Let me explain.

Community Businesses

In your community, there are many businesses. These businesses, if upheld, will bring respectable traffic to your community. Restaurants, bakeries, schools, libraries, and more are all a reflection of the upkeep and character of the community. Outsiders often get a sense of the community by the quality of service, experience and ambiance within the local community restaurants and other institutions. The upkeep of the schools and libraries are all factors looked upon by drive-through visitors. Frequent investment is crucial to property value, and quality of living. Time and money that flows through these community institutions will always be reflected in the property values and ultimately the quality of life for the community’s residents. So take time to eat in your community restaurants, donate books to your local libraries and schools, and frequent the stores and shops in your community.

Entrepreneurship

How large of a return did Bill Gates, Russell Simmons, or Oprah Winfrey get on their original dollars of investment? The number is far too large for any ordinary calculator to hold. Successful entrepreneurship has always been guaranteed to be one of the largest returns on your investment. So I challenge you to open your own business in your own community. Seek support from the community and they will often respond positively to your business endeavor.

Education is a key component of entrepreneurship. Oftentimes an individual has not discovered his or her passion; they have not received the education that provides them with the knowledge and exposure to identify areas that will be most beneficial for them. Investing in education is a key component to entrepreneurship in your community. Flourish your mind, and your business will also flourish.

Youth

Investing in the youth of our communities will not only yield enormous returns but returns that are often the most immediate and most fulfilling. The youth of our communities are crying out for our assistance and support. The parents and the teachers need our assistance. Seeing the smile on a youngster’s face – a smile that you helped to create – is one of the most personally rewarding experiences one can have. I personally spend a great deal of time with the youth in my community, and will always continue to do so because I continue to see so many positive results. How many young Bob Johnsons, Warren Buffets, or Bill Clintons will never reach their potential because we didn’t take the time to invest in him or her? I urge all to take some time to volunteer at the local school in your community and talk to the children. Career days, tutor programs, after school programs, and more are all opportunities to stop by and spend some time with the children of your neighborhoods. They are our future, and investment in their lives is also an investment in yours.

The bible says, “Neither shall the inheritance remove from one tribe to another tribe; but every one of the tribes of the children of Israel shall keep himself to his own inheritance.” (Numbers 36:9) What this means to me is that money made in the community should primarily be spent for the benefit of the community. So I urge you to think about how you are contributing to your own communities. If you are not active, then how can you get active? Many people look to the politicians to create change, and often fail to realize that they can create positive change and movement right in their own communities. How much time are you putting into the care and upkeep of your community? Do you throw cigarette butts, chicken bones, and other trash on the streets, yards, or subway tracks? Participate in your community, donate to your community (time and money), and most of all RESPECT your community. It will go a long way for you, me, and the American society as a whole.

]]>http://newsone.com/1472805/the-greatest-investment-your-community/feed/5african american mentorionenewsoneThe Perfect Credit Card For Youhttp://newsone.com/1467565/the-perfect-credit-card-for-you/
http://newsone.com/1467565/the-perfect-credit-card-for-you/#commentsWed, 17 Aug 2011 20:24:10 +0000http://newsone.com/?p=1467565]]>Everybody is worried about the U.S. debt ceiling. But it’s even more important to worry about your own. Ryan Mack shows you how to obtain and use credit cards to establish a credit history:
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]]>http://newsone.com/1467565/the-perfect-credit-card-for-you/feed/23Ryan MackionenewsoneBuilding Your Credit Scorehttp://newsone.com/1467375/building-your-credit-score/
http://newsone.com/1467375/building-your-credit-score/#commentsWed, 17 Aug 2011 17:08:42 +0000http://newsone.com/?p=1467375]]>Every successful financial plan needs to have clean credit and a high FICO score. If we are to see more home and business ownership having good credit is the first step towards accomplishing this goal. Too many times I have personally seen many opportunities missed because we have not taken the time to “clean” our credit.

Knowing how to improve your FICO score is one of the most important factors in clearing up your credit. A FICO score is a three-digit number that determines the interest you will pay on your credit cards, home mortgage, and even determine whether you will get that new apartment. FICO, the Fair Isaac Corporation, single handedly created this three-digit number that will soon become the dictator of your livelihood in many ways. There are five elements of the FICO score. They are listed below along with their weight of importance.

Record of making timely bill payments………………………………………35%

Total balance on your credit cards and other loans compared to your total credit limit……………………………………………………………………..30%

Pay Your Bills on Time: Always pay your bills on time. There are no excuses for late payments. As soon as I receive a bill, I pay it immediately. It was a very difficult habit to establish, because instinct says to throw it on the dresser under a pile of other envelopes and avoid it like the plague. Another bill paying strategy is to designate a day of the month where you do nothing but pay bills. No matter what you are doing, stop and pay your bills. The only downfall to this is that sometimes if you happen to miss that day, it leaves room for procrastination. If the fixed monthly cycle is your preferred strategy, designating two days a month might be more appropriate.

Better still, just pay as they come. One missed payment of a bill can lower your FICO score by 50 – 100 points. If you miss a month of payments a 700 FICO score can easily be 526. I understand that many times it seems as if the best solution towards bills that you cannot afford to pay is to act as if they do not exist, but it is these negative habits that we allow to persist that are severely hindering the economic growth of our community. I challenge you to be responsible to each bill that comes into your home. We all have had times when we have fell behind or have missed a payment…myself included. It is how we recover from these moments to diligently create positive habits that will transcend to other areas of our lives. Responsibility and accountability are principles that we all need to practice in paying bills and to ensure a solid infrastructure of the upcoming economic empowerment movement.

The Debt-to-Credit-Limit Ratio: Your debt-to-credit-limit (D/C) ratio is an important issue as well. Let’s just say you have a $3,000 balance on a credit card and a total credit limit of $6,000. Your D/C would be 50% ($3,000/$6,000). This is an important number that accounts for a high percentage of your FICO score (30%). Continuing with the above example, if you pay off a $1,000 balance on one of your cards (let’s call it Card A), with a credit limit of $2,500, I would advise you to NOT cancel Card A. Here is why. If you cancel Card A, your credit limit will decrease from $6,000 to $3,500 (remember you had a $2,500 limit on the card). Since you just paid $1,000 of your total balance owed, your new balance owed decreased from $3,000 to $2,000. Your new D/C ratio would now be 57% ($2,000/$3,500), which increased from 50%. The end result of your presumably responsible behavior of bill payment and debt reduction would be an increase in your debt-to-credit-limit ratio and a decrease in your FICO score. The best move when paying off the credit card balance would be to simply cut up your card, and leave the credit line open unless there is an annual fee. There is no sense in wasting $50 to$70 a year on a card you will never use.

The Length of Your Credit History: Your credit history is very important as well. If you must cancel a card, make sure you cancel the newest ones first. The Fair Isaac Corporation can use more points of data to determine your FICO score the longer your credit lines have been open. Protect those cards you have with the longest history. If you must cancel a card, cancel one card then wait a month. At the end of the month, wait and see if your score was negatively affected. If it wasn’t, do the same for each additional card you want to cancel.

New Accounts/ Card-to-Loan Mixture: For 4 and 5, you want to be careful not for apply for too many cards at once. This sends a red flag to lenders. Steer clear of too many retail cards as well. When you are at the sales counter at Sears, it can be very tempting to allow the checkout employee to coerce you into a savings card that will open the door to “extreme savings”. In the book The Millionaire Next Door, the authors Thomas J. Stanley and William D. Danko mention the most popular credit cards of millionaires. The top five credit cards of millionaire household members, and the percent of millionaires who own these cards, are:

Visa (59%)

MasterCard (56%)

Sears (43%)

J.C. Penny’s (30.4%)

American Express Gold (28.6%)

The truly wealthy realize the lack of need for these retail credit card traps. They use cards responsibly and with caution so as not to accumulate unnecessary, overpriced debt.

Lenders like to see a good mix of installment loans (i.e., monthly car notes, monthly mortgage notes) along with your credit cards. Installment loans show just how reliable one can be, especially if payments have been made for an extended period of time, as well as in a timely fashion.

So now that you know what goes into a good FICO score it is time to start the road to building up your score. When you buy your new Toyota you want to be sure you have the best rates on your car loan don’t you? Start today!

Ryan Mack, Author of Living in the Village and President of Optimum Capital Management, LLC

]]>http://newsone.com/1467375/building-your-credit-score/feed/10creditscoreionenewsonecredit score11 Tips For The Unemployedhttp://newsone.com/1450575/11-tips-for-the-unemployed/
http://newsone.com/1450575/11-tips-for-the-unemployed/#commentsTue, 09 Aug 2011 15:02:44 +0000http://newsone.com/?p=1450575]]>It seems there is a disconnect from what is being covered by financial news and what the public is really concerned about. You can’t turn on the financial news networks without hearing questions such as the following:

“Will the US raise its debt ceiling?”

“Will the tax cuts for the rich be extended?”

“Will the price of gas continue to increase?”

Not to say that these questions aren’t important, but as the unemployment rate holds steady above 9 percent and the real rate of unemployment is over 16 percent people are less concerned about taxes, debt ceilings, and gas prices than they are concerned about keeping their jobs or finding one. So with that in mind, I wanted to dedicate this article to those who are unemployed by giving them some financial tips/strategies to employ in this hard economic market.

Whenever I discuss financial tips/strategies for the unemployed, many in the audience respond with bewildered looks coupled with a “huh?!” Or I get the classic oversimplified response which states, “FIND A JOB!” This is great advice, but there are other financial strategies for those who find themselves unwillingly placed into the ranks of the unemployed.

1. Get rid of foolish pride – Many people feel that their job is an integral part of their identity. They take pride in their career and being laid off or fired can be a huge blow to the ego. I have spoken with many who experience a sense of shame upon finding themselves unemployed. This shame can lead to medical ailments such as depression or stress. Going into a shell or becoming the life of the party to mask the reality of your situation from your friends are both very normal occurrences. Picking up the dinner tab with friends, shopping sprees, and trying to put on the facade that things are still normal is a very destructive and expensive habit. Not only are you using money which should be kept in your savings, but you are depriving yourself of a very important resource — your network.

Your network of family, friends and acquaintances who can help you find employment is often more expansive than you realize. Very often your friends and family are more likely to work harder for you to find employment than random strangers who read your resume on websites and with employment agencies. The more people who know about your situation, the more support you will have from those willing to go the extra mile to provide assistance. Warm referrals, placing resumes directly into the hands of people who can make hiring decisions, and constantly monitoring the employment scene are more likely to occur by people who care about your future. In addition, using social networking sites like Linkedin, Facebook, and Myspace can magnify your outreach to others who can assist you in your search.

2. File for benefits – There are some who are unemployed who feel so disillusioned and embarrassed by their situation that they are reluctant to file for unemployment benefits. You have been paying for someone else to get these benefits whenever you pay your taxes, so you might as well obtain some assistance for yourself in your time of need.

3. Join the ranks of the “Under Employed” – Having “a” job is better than having “no” job. The mortgage company or your landlord will not stop collecting rent just because you lost your job. If you find it hard to find a job in your first field of choice, you must begin to look for the next best thing. There are thousands in my hometown of Detroit who are in this very predicament. They were laid off from the automobile industry and have no other training but that which applies to a suffering industry. If you can, find a job that will at least help pay bills so you can remain above water. While you are working as an “under-employed” individual, consider other options that you might pursue while you are working – options that will expand your scope of career choices and therefore make you more marketable. For example, community colleges offer inexpensive classes and training, non-profits offer free and inexpensive certification courses (consult your local politicians office for a list of community resources), and the internet has made the new education and training search much easier. Never look at a temporary job as a negative or a step backwards; think of it as a positive event that buys you the time to look for the job of your first choice while allowing you to pay your bills.

4. Get CHEAP! – Your pot of funds now has a finite ending and every penny spent gets you one penny closer to that scary ZERO figure! Now is the time to design a budget for your household, tighten your belt, use coupons, buy food in bulk, use only your ATM machine to avoid charges, and eliminate all impulse spending.

Lowering your interest rates can assist in lowering your monthly bills so inquire about lowering your interest rates on your credit cards or your eligibility to refinance your home. Fannie Mae has reported that up to 50 percent of individuals who own a loan from Freddie Mac or Fannie Mae — and who are eligible for a loan refinance — have not taken advantage of the opportunity to get a lower interest rate.

Here are a few other quick tips that will allow you to cut costs:

Cut all unnecessary luxury spending that create monthly bills such as cell phone bills (use a house phone and carry two quarters), gym memberships (work out at home), garage parking in the city (park on side streets), and magazine subscriptions (read articles on the internet for free at the library).

Only take on additional debt in the case of an emergency.

Talk to your accountant about researching all legal tax strategies that you can utilize.

No more loans or money gifts to family members and/or loved ones.

5. Make job searching a job – If you are unemployed, your new job is to find a job. Create an organized database listing all places that have received your resumes, the primary contact person and and an expected date to hear from them. Rank them in your database according to the likelihood of receiving a yes. Start your search early in the morning and set as many appointments as possible. Schedule meetings and appointments on a daily basis since the more time that you spend away from home — the more productive you will be — and less time will be spent watching daily talk shows.

6. Stay healthy – Even with the 65% COBRA subsidy from the government, maintaining health insurance can be costly. Whether you elect to maintain health insurance or not (I always advise against going without health insurance), make sure you are taking every precaution to remain healthy. Eat healthier. As we all know, junk food is not only high in calories but it is usually filled with sugar which leads to more costly trips to the dentist. Work out at least three times per week for a minimum of 30 minutes per day, wash your hands regularly, get plenty of sleep, and take up yoga at home. Staying healthy is not only good for the body, but it helps to maintain a positive/confident outlook that will make for a more impressive job interview.

7. Don’t touch your 401k (if you can help it) – Try your best not to have a knee jerk reaction to raid your 401K or company retirement plan. Keep in mind, just because your statement reads “$50,000” does not mean you have that much to withdraw. If you consider the federal, state, and perhaps city taxes on the funds that you have invested along with the 10% early withdrawal penalty; and the possibility of deducting any matching funds contributed by your company (if you are not fully vested); that $50,000 could easily turn into $25,000. Raiding the company retirement plan should be the absolute last option.

8. Investing is Not a Priority – If you have other investments, don’t use this as a time to check your portfolio every minute hoping that the $10 stock turns into the next Google. This is unnecessary stress in your life. If you were putting funds into an account monthly, those funds should now be diverted into your checking or savings account with the most access. Liquidity is your best friend in these times of hardship and stocks are not liquid. Even if you have your funds in a standard, non-qualified brokerage account you may not have to pay a penalty for the sale of a stock, but you have tax liabilities if you have gains. As with the 401K, stop your investing in these funds, but don’t rush to liquidate them at first. However, if you are forced with the choice between paying rent and keeping a position in a stock, and you have exalted ALL other options, feel free to sell the stock.

9. Decide which bills to pay first – After you have exhausted all options, if you are still unemployed, there may be a time to make hard decisions about which bills take priority. This should not be determined by which collection agencies are the most annoying or seem to yell the loudest. If you cannot pay your light bill, you may lose your lights. If you cannot pay your phone bill, you may lose your phone. However, if you cannot pay your rent or mortgage, you will lose your home. Losing your phone or lights might be a tremendous loss, but not as big of a loss as having to sleep on the street. I am not suggesting that it is okay to skip any bill payment that you owe as this is irresponsible and negatively impacts your credit; however, when hard times are upon us, we must keep things in proper perspective.

Here are a few things to consider BEFORE you decide to skip a bill payment:

Have you called the companies before to negotiate a payment plan?

Have you checked your budget and cut all luxury expenditures to see if you can squeeze out a few extra dollars?

Do you have any items around the home of value that you would consider selling? Is it time to host that yard sale that you have been considering?

10. Don’t Get Suckered – When desperation sits in, financial offers that you would not have considered before now begin to look more attractive. The financial predators are constantly swimming in the waters trying to attract those who are worried, anxious, and concerned that using “traditional” strategies of working hard will not be effective. These are the commercials that only play during the middle of the day or late at night when the typical employed person will never see them. They offer you overnight fame by purchasing the most effective real estate system ever created; or magical options trading software that can never be incorrect. For a small fee, you will be able to purchase your financial freedom — what a deal! Your money is too valuable to waste on false notions of fast prosperity.

11. Have Faith! – What other choice do you have? Faith is not waiting on a unicorn to prance into your life or a rainbow to form which signifies the end of your misery. Faith is half believing and half acting on that belief. People behave according to what they believe will happen. So if you believe that things will continue to be bleak, your job search will weaken and this will lessen the chances of finding a job. However, if you believe that your future will be bright, and you hold onto this positive outlook, you will be more likely to do the work that is necessary to find employment. I promise this to you, if you hold on to the belief that you will find a job, and aggressively pursue that belief, you will survive these hard times!

Ryan Mack, Author of Living in the Village and President of Optimum Capital Management, LLC

]]>http://newsone.com/1450575/11-tips-for-the-unemployed/feed/17Unemployed African-AmericanionenewsoneBlack unemployedSeven Tips For Families During The Financial Crisishttp://newsone.com/1450245/seven-tips-for-families-during-the-financial-crisis/
http://newsone.com/1450245/seven-tips-for-families-during-the-financial-crisis/#commentsMon, 08 Aug 2011 14:51:11 +0000http://newsone.com/?p=1450245]]>Unemployment reaches record levels, the housing market is slow, and real wages haven’t increased in far too long. Many are finding themselves discouraged and losing and faith for a better financial tomorrow. However, an increased level of faith will allow all of our financial dreams and goals to come to fruition despite this recession.

There are two primary components that comprise the essence of faith. The first element is “to believe”. Do you believe that you will be able to meet your goals and achieve wealth in your future? Can you visualize that new house, new job, or a retirement fund that covers all of your living expenses for the remainder of your days?

The second element is “acting on what you believe”. This is just as important as the first. I will outline seven actions that you can begin today that will allow you to demonstrate that your faith for a brighter tomorrow is real.

One: Put together a household budget using a template, Quicken, or even a website such as www.mint.com.

Two: Make sure that you have adequate insurance coverage to manage life’s unexpected risks. However, do not fall prey to predatory insurance coverage. Let your needs dictate how much insurance you purchase and not the desire for a commission of an insurance agent.

Three: Plan your estate wisely. Invest in a will, a living will, health care proxy, and a power of attorney. We never know what tomorrow holds and our families left behind suffer from lack of preparation.

Five: Eliminate all of your credit card debt. With a national average APR of 14.6% this debt is far too expensive for our households to carry.

Six: Maximize your company retirement plan. In my years of teaching I have NEVER heard someone putting too much money into their 401K, but have heard many complaints about not putting enough.

Seven: Keep at least 9 months of living expenses saved in a high yield savings account for a rainy day.

If you can do just these steps you would be making a good start to a brighter financial future. Remember, faith is not just a feeling…it is an action. Take action today to take control of your financial future!

Ryan Mack, Author of Living in the Village and President of Optimum Capital Management, LLC

]]>http://newsone.com/1450245/seven-tips-for-families-during-the-financial-crisis/feed/2blakc family financeionenewsoneBlack family financeRebuilding The Economy With Financial Expert And Advisor Ryan Mackhttp://newsone.com/1448395/rebuilding-the-economy-with-ryan-mack/
http://newsone.com/1448395/rebuilding-the-economy-with-ryan-mack/#commentsFri, 05 Aug 2011 21:08:52 +0000http://newsone.com/?p=1448395]]>The numbers say that we are out of the worst recession since the Great Depression; however, for most American the financial struggles are far from over.

A housing market that has 1 out of 4 owing more than what their house is worth, with millions who are at least 90 days late on paying their mortgage; record levels of foreclosure; banks afraid to give loans to individuals and businesses for fear of default; and an employment market that has over 1 of 5 in this country either out of work or working part time just to make ends meet, are just a few of the economic problems faced by many in this country.

NewsOne and I are concerned about the economic destinies and know that it is almost impossible for taxpayers to stay afloat without an organized financial strategy. This is why we have launched a series of posts and webisodes, sponsored by Toyota, to make sure that we are giving you tangible solutions to help you in navigating the financial obstacles presented in this volatile economy.

So take time to watch the videos, read the posts, leave comments, and send us messages about the issues that you would like to discuss.

This is your forum and opportunity to learn some valuable information and we want to be sure you get the most out each entry. I look forward to talking to you each week as we continue to rebuild this country and lead the way to an economic recovery through the teaching and implementing of fiscal responsibility!

Ryan Mack, Author of Living in the Village and President of Optimum Capital Management, LLC

]]>http://newsone.com/1448395/rebuilding-the-economy-with-ryan-mack/feed/1ryanmacksmionenewsoneRyan MackStop Giving Ray-Ray Loans And Tell Him To Get A Job!http://newsone.com/1381475/loans-family-members/
http://newsone.com/1381475/loans-family-members/#commentsWed, 13 Jul 2011 17:02:25 +0000http://newsone.com/?p=1381475]]>Too many times in family communities across the country— those who have become comparatively financially successful — are unknowingly volunteered to become the “universal provider” within their family circle. I should stress the word “comparatively” because many times those who are MORE successful within a family are also having their own financial problems. But because they do not exhibit the same signs of struggle as other family members often they are viewed as “well off.”

The universal provider is constantly hit with requests for these short-term loans that should never be called loans because somehow they are never repaid. These pleas for assistance from family members in need, affectionately known as Ray-Ray sound something like this:

“I am a little short on rent this month…can I borrow $500 until I get my tax return?” (Which never comes.)
“I was laid off from work again…can I borrow $2000 until I can get back on my feet again?”
“I was evicted from my apartment…can I stay in your place rent free until I can find another place to live?”

I am NOT saying that people should not help others; however, it is time for us to speak candidly about how we are helping our close friends and family members. If you constantly find yourself in the role of the “universal provider” issuing “loans” that are never paid back, then my argument is you are not helping anybody at all. You are enabling their dependence upon you as opposed to helping them develop their own ability to sustain their economic well being.

Furthermore, many universal providers are suffering from their own economic hardships — and this irresponsible giving can precipitate their economic demise as they squander the precious few dollars they had stored for living expenses, bills, or even retirement and other important long-term goals. So for the universal providers out there, here are 3 tips as to how you can maximize the resources in your family:

1. Use a creative promissory note – Make sure that every time Ray-Ray asks you for a loan there is a written agreement before funds exchange hands. This agreement is to outline the terms of the loan, such as how the loan will be paid back, the time-frame of the loan, and conditions if the loan is defaulted. The agreement is to be signed by both parties. Do not be afraid to enforce this agreement in a court of law. I understand this can feel cold, but it is even more cold if Ray-Ray does not pay back a debt and you find yourself in a financial bind. You don’t have to request to be paid back in monetary terms but perhaps an exchange of man hours applied to household chores, errands for your business, or even community service hours donated to your favorite local nonprofit.

You can also request to be paid back with documented proof of Ray-Ray’s efforts to improve his or her condition. Proof of enrollment in the local community college, evidence of a completed website to his or her new business, a written letter from a GED program to complete a high school degree, copies of completed job applications… all of these are evidence of tangible tasks that this individual is actually doing work to improve their economic condition. If they are not able to provide this proof, then it is time to take them to see Judge Mathis! The bottom line is there must be a measure of accountability. Without accountability, Ray-Ray will continue to tap your financial well until it runs dry leaving you both penniless and dependent upon the next family member to waste their crucial financial resources.

2. Have a family empowerment meeting – One of the most powerful financial support systems within our communities, IF we are efficient and not irresponsible in how we utilize the resources, is the family. I think we take for granted how powerful the family is. Families are great at meeting for Easter, Christmas, weddings, funerals, reunions and other normal gatherings; however, what if the family could meet specifically to have economic empowerment discussions?

I have hosted many family meetings where we are able to seek and find the necessary empowerment resources within the family. Pull ALL the members of the family together including immediate, extended, and close friends who are just like family. Have an independent person who knows a bit about finance host the discussion (preferably someone you can trust to not think of this as an opportunity to make a sale) and answer direct questions such as the following:

· How many people are unemployed and within what fields do you have an expertise or skills? Have someone take notes of those who respond then follow up with the question, “Do we have anyone in those particular fields that can assist with a connection or resource to assist?”
· Do we have any children who are going to college and can we all agree to establish a college savings fund in a 529 account in which we pool funds for those youth going to school?
· Is there anybody who is in jeopardy of foreclosure or being evicted? Can we set up a roommate situation to save the home or pool funds for a mortgage in return for in-kind services rendered?
· Do we have any current or future entrepreneurs in the family who need support and can you outline exactly the type of support you will need from the family? Is there a possibility to turn any of these business ideas into family run businesses by which we all can profit?

3. SAY NO! – If you don’t have the money, guilt is not a good enough reason to try to come up with the money. Learning how to say no is one of the easiest yet most difficult things we need to do in our community.

If you really want to help somebody, putting them in a position where they can help themselves is the most effective way of providing assistance. Giving them money is just putting gum in the hole of the dam which may seem to stop the leak temporarily, but only leads to a larger crack and ensuing flood when the dam breaks which hurts everybody.

Tough love must be tough, but it must be balanced by love so don’t ever turn down a chance to help those you love. Find a way to help that will lead to true empowerment and all of your family will be stronger for it in the end!